Gartner Research

High-Tech Leaders Optimize Product Portfolio Complexity for Improved Profitability

Published: 22 October 2013

ID: G00251409

Analyst(s): Stan Aronow

Summary

With an accelerating pace of new product introductions, high-tech companies face growing portfolio complexity. This research discusses trends, challenges and the approaches that leaders use to more effectively balance between variety desired by the market and complexity-driven costs.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Intense competition and innovation are driving more frequent high-tech new product cycles, increasing high-tech companies' need for effective product portfolio and life cycle management
  • Proliferation of unique components and end-item SKUs is adding complexity, limiting supply flexibility and impacting costs throughout high-tech companies' end-to-end supply chains
  • Without strategic directives and the capability to manage product complexity, high-tech supply chain organizations are left reacting to sales and marketing and product engineering groups

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